Ferguson, a plumbing and heating products supplier, was a stock pick in this week's issue of Barron's.
Photo Insert: Ferguson bounced where it needed to, as the stock held near the $123 zone nearly two weeks ago.
Ferguson bounced where it needed to, as the stock held near the $123 zone nearly two weeks ago. That level has been an important technical reference zone for nearly a year. The 200-day moving average is close to that point as well, Frank Cappelleri reported for Barron’s Daily.
While bouncing at support remains critical for Ferguson going forward, it must now break the downtrend line from its mid-February high. The stock has tried and failed to puncture that line twice over the last six weeks.
From a technical perspective, this is one case where it might be best to let the dueling technical patterns play out before getting too heavily involved.
Frank Cappelleri is the founder and president of CappThesis, an independent research firm that helps active investors through time-tested charts and statistical analysis. He spent 25 years on Wall Street as an equity sales trader, technical analyst, research sales specialist, and desk strategist.